President Donald Trump announced on Monday that China has agreed to “open itself up to American business” during trade discussions between Washington and Beijing on Saturday.
Trump told reporters at the White House on Monday that the agreement was likely the most significant breakthrough to come out of the trade discussions.
Treasury Secretary Scott Bessent began trade discussions with China in Geneva on Saturday, culminating in a 90-day tariff relief arrangement.
“In addition, yesterday we achieved a total reset with China. After productive talks in Geneva, both sides now agree to reduce the tariffs imposed after April 2nd to 10 percent for 90 days as negotiators continue on the largest structural issues,” Trump said in the Oval Office.
“And I want to tell you that — a couple of things. First of all, that doesn’t include the tariffs that are already on, that are our tariffs, and it doesn’t include tariffs on cars, steel, aluminum, things such as that, or tariffs that may be imposed on pharmaceuticals, because we want to bring the pharmaceutical businesses back to the United States, and they’re already starting to come back now based on tariffs,” Trump added.
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The White House on Sunday published details of what could be a historic trade deal with China, the world’s No. 2 economy, after President Trump imposed a series of crippling tariffs aimed at resetting economic conditions between both nations.
“Today, on the heels of the brand-new deal with the United Kingdom, President Donald J. Trump reached an agreement with China to reduce China’s tariffs and eliminate retaliation, retain a U.S. baseline tariff on China, and set a path for future discussions to open market access for American exports,” says a “fact sheet” statement on the deal following two days’ worth of negotiations in Geneva, Switzerland.
“For too long, unfair trade practices and America’s massive trade deficit with China have fueled the offshoring of American jobs and the decline of our manufacturing sector,” the statement added. “In reaching an agreement, the United States and China will each lower tariffs by 115% while retaining an additional 10% tariff. Other U.S. measures will remain in place.”
The statement says that both nations will adopt the new measures on Wednesday, May 14. For now, however, the tariff roll-back is for 90 days, but the news was good enough that the Dow Jones soared 1,000 points at the opening bell on Monday.
“China will remove the retaliatory tariffs it announced since April 4, 2025, and will also suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025,” the fact sheet says. “China will also suspend its initial 34% tariff on the United States, it announced on April 4, 2025, for 90 days, but will retain a 10% tariff during the period of the pause.”
“The United States will remove the additional tariffs it imposed on China on April 8 and April 9, 2025, but will retain all duties imposed on China prior to April 2, 2025, including Section 301 tariffs, Section 232 tariffs, tariffs imposed in response to the fentanyl national emergency invoked pursuant to the International Emergency Economic Powers Act, and Most Favored Nation tariffs,” it adds, noting the U.S. will also suspend its 34 percent reciprocal tariff for the time period.
The fact sheet went on to say that both sides will continue negotiations on a longer-term deal after the 90-day period begins.
The agreement also addresses the fentanyl crisis in the U.S., which Trump and previous presidents have blamed partially on China for supplying drug-making materials to Mexico-based cartels that then smuggle the finished product across the border.
“These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the Parties. As required, the two sides may conduct working-level consultations on relevant economic and trade issues,” said a joint statement issued by Chinese Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.